The central government’s borrowing requirement in 2021 is expected to be kr. 247 billion, mainly stemming from redemptions on the short-term issuances built up in 2020 to finance temporary Covid-19 measures, cf. Table. The target for sales of government bonds in 2021 is kr. 125 billion at market value. The remainder of the borrowing requirement will be covered via T-bills and by drawing on the central government’s account.
Borrowing requirement 2021
|Net financing requirement||12|
|Redemption bonds etc.||62|
|Redemption commercial papers||||||70|
| Note: Redemption bonds etc. includes redemptions and buy-backs of government bonds, payments from the central government in currency swaps and net purchases of government funds.|
The central government offers a broad list of on-the-run issues in 2021 and issuances will continue to be concentrated in the 2-year and 10-year nominal maturity segments. In the first half of 2021, a new 2- and 10-year nominal bond will be opened with maturity in 2024 and 2031 respectively.
In 2021, the target for T-bills is an outstanding amount of kr. 60 billion by year-end. Two monthly T-bill auctions will be held in 2021. New 12-month T-bills will be opened at the auctions with the first banking day as value date in March, June, September and December. The programme will thus continue to consist of four T-bills expiring within the next 12 months. This contributes to continued flexibility in the issuance policy.
The outstanding amount of commercial papers will be reduced as the temporary covid-19 measures, including deferred tax and VAT and on-lending to LD Pensions in connection with the disbursement of holiday allowances, are phased out.